Paper overload?

 

 

Accountants are often asked for clarification on what records clients need to be kept and for how long.

Individual taxpayers should ensure they retain supporting evidence for all items reported on their self assessment tax returns. This will include P60s/P45s/P11ds from employment posts, investment income/interest received statements, invoices for investment property income and expenses, pension contribution statements, charitable donation receipts, details of capital gains and anything else of relevance.

Businesses should retain supporting evidence for all income and expenditure. If a business spends/receives cash without a receipt, it is recommended that a manual record is maintained of the transaction at the time as evidence, should HMRC ever enquire.

Generally, information should be kept for 6 full tax years, however certain information, such as purchase costs for investments, should be retained until the asset is sold, as this will be needed to calculate the capital gain arising on any subsequent sale.

There is no requirement to maintain records in a paper format, with electronic documents accepted by HMRC providing they are easily accessible and readable. Various options are available to facilitate electronic documents including some apps which automatically import data into accounting software once an invoice has been scanned.

For further information on record keeping requirements and all aspects of self-assessment tax please contact your local Lentells office:

Chard

Jane Jordan -  01460 64441  jane.jordan@lentells.co.uk

Seaton

Mike Griffiths -  01297 20584  michael.griffiths@lentells.co.uk

Taunton

Adrian Stallard -  01823 286274  adrian.stallard@lentells.co.uk